Economist Alban William Phillips believed that:
A) the Fed should follow a policy rule because it does not know the lag structure.
B) the Fed should follow a policy rule to avoid monetary surprises.
C) there is an inverse relationship between inflation and unemployment.
D) private sector spending is inherently unstable.
E) government spending is inherently unstable.
Correct Answer:
Verified
Q94: Economists of the rational expectations school:
A)have no
Q95: In general,the Fed has not embraced a
Q96: One way of expressing the concept of
Q97: An increase in the expected inflation rate
Q98: Which of the following would correspond to
Q100: The Phillips curve shows:
A)the relationship between the
Q101: Advocates of the passive approach to government
Q102: In general,the faster inflationary expectations adjust,the:
A)less macro
Q103: If inflationary expectations increase,we can infer that:
A)unemployment
Q104: Advocates of the active approach believe that
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